2013 New York Consolidated Laws
BNK - Banking
Article 12-E - (599-A - 599-R) LICENSED MORTGAGE LOAN ORIGINATORS
599-K - Required surety bond.


NY Banking L § 599-K (2012) What's This?
 
    §  599-k. Required surety bond. 1. Each mortgage loan originator shall
  be covered by a surety bond in accordance  with  this  section.  In  the
  event  that  the  mortgage  loan  originator is an employee or exclusive
  agent of an originating entity, the surety bond of such  person  may  be
  used  to satisfy the mortgage loan originator's surety bond requirement;
  provided that such surety bond contains coverage for each mortgage  loan
  originator  not  otherwise  covered  by  a  qualifying surety bond in an
  amount prescribed in subdivision two of this section.  The  surety  bond
  shall  be in a form prescribed by the superintendent. The superintendent
  may promulgate rules or regulations with respect to the requirements for
  such surety bonds as are necessary to accomplish the  purposes  of  this
  article.
    2. The penal amount of the required surety bond shall be maintained in
  an  amount  that  reflects  the dollar amount of loans originated by the
  mortgage loan originator as determined by the superintendent.
    3.  When  an  action  is  commenced  on   a   licensee's   bond,   the
  superintendent may require the filing of a new or supplemental bond.
    4.  Immediately upon recovery upon any claim or action on or under the
  bond, the mortgage loan originator (or the  originating  entity  as  the
  case  may  be), shall file a new or supplemental bond restoring the face
  amount of the bond to the amount required by the superintendent.

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